TMI Blog2012 (2) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act relate to assessment years 2003-04 and 2005-06. The only contention and issue raised is whether the provision for maintenance costs can be claimed as an expense under Section 37 of the Income Tax Act, 1961(?Act? for short). The reasoning given by the Tribunal reads as under: On due consideration of the facts and circumstances, we do not find any merit in the grounds raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find that there is decreasing trend in the closing balance on this provision. The accounting treatment as well as allowability of such maintenance expense on accrual basis was accepted in the past by the Auditor including CAG as well as by the income Tax Department. There is no sound reasoning assigned by the AO in the asstt. Orders for disturbing this method of accountancy. Thus following th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e method of accounting and is no longer making any provision for maintenance cost. Learned counsel for the respondent-assessee states that change was made to avoid further confusion or litigation and it was not making any difference in the taxable income. It is therefore clear that this issue does not have any recurring effect in view of the change made by the respondent-assessee. After examini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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